Report Overview

Rapid increasing in e-waste driven by high adoption of electric vehicles (EVs), the US federal and states governments’ stringent regulations and supportive initiatives, and an increasing focus on resource recovery are expected to boost the growth of United States Electric Vehicle (EV) Battery Recycling Market during the forecast period between 2025 and 2031.

United States Electric Vehicle (EV) Battery Recycling Market – Industry Trends & Forecast Report, 2031

United States Electric Vehicle (EV) Battery Recycling Market size was estimated at USD 0.84 billion in 2024. During the forecast period between 2025 and 2031, United States Electric Vehicle (EV) Battery Recycling Market size is projected to grow at a CAGR of 34%, reaching a value of USD 6.6 billion by 2031. Prominent drivers of the United States Electric Vehicle (EV) Battery Recycling Market include growing environmental awareness and the rising need for sustainable battery disposal solutions. The US federal government’s initiatives, such as This is significantly supported by government initiatives, such as the Bipartisan Infrastructure Law (DOE funding), Inflation Reduction Act (tax credits), the U.S. Environmental Protection Agency (EPA) Regulations, and the Department of Transportation’s (DOT) stringent rules for transporting lithium-ion batteries. These federal as well as state regulations are actively promoting responsible recycling practices and streamlining battery disposal processes. The increasing adoption of electric vehicles (EVs) is compelling battery manufacturers to invest in efficient recycling systems to recover valuable raw materials and mitigate environmental impact. Furthermore, technological advancements in recycling methods, including sophisticated material recovery techniques, are attracting investments and fostering the growth of domestic recycling infrastructure to secure critical minerals and materials from the used batteries. These efforts are further bolstered by collaborations between automotive companies and recycling firms, which are supporting the creation of a closed-loop system for battery usage and reuse. As the market matures, there is a clear shift toward circular economy models, supported by evolving regulations aimed at strengthening the battery recycling framework in the United States and ensuring long-term sustainability.

Source: BlueWeave Consulting

Electric Vehicle (EV) Battery Recycling – Overview

Electric vehicle (EV) battery recycling is the process of recovering valuable materials, such as lithium, cobalt, nickel, and graphite from used or end-of-life EV batteries. The EV battery recycling process helps in the reduction of environmental pollution, conserve natural resources, and support the circular economy by enabling the reuse of extracted materials in new batteries. It involves methods like hydrometallurgical, pyrometallurgical, and mechanical processes to safely dismantle and extract components. Recycling is increasingly important due to the rising use of batteries in EVs, consumer electronics, and energy storage systems (ESS).

United States Electric Vehicle (EV) Battery Recycling Market

Growth Drivers

Increasing Focus on Securing Domestic Supply of Critical Minerals

The United States federal and state governments’ supportive policies and initiatives are playing a pivotal role in accelerating the growth of United States Electric Vehicle (EV) Battery Recycling Market. Unlike the European Union (the (EU), the United States has no single mandate by the federal government. However, the players in United States Electric Vehicle (EV) Battery Recycling Market are depending on a federal incentives (DOE funding) and tax credits for infrastructure, EPA rules for hazardous waste, and DOT transport rules, as well as increasing regulations for producer responsibility. All these initiative and stringent regulations are aiming to secure local supply of critical minerals in the United States, as the country faces significant challenge in gaining access to the world markets for critical minerals

Challenges

High Initial Costs for Setting Up EV Battery Recycling Plant

High initial investments required for setting up an EV battery recycling plant could be a significant barrier for the growth of United States Electric Vehicle (EV) Battery Recycling Market. Setting up advanced recycling facilities requires substantial capital for technology, infrastructure, and skilled labor. Many small and medium-sized enterprises (SMEs) face financial constraints, limiting their ability to enter the market. Additionally, the cost of acquiring modern equipment and complying with evolving environmental regulations further adds to the financial burden. The long gestation period before returns are realized also discourages investors. As a result, despite growing demand and supportive policies, the high upfront cost remains a major challenge in scaling EV battery recycling operations.

Impact of Escalating Geopolitical Tensions on United States Electric Vehicle (EV) Battery Recycling Market

Escalating geopolitical tensions could significantly impact the growth of United States Electric Vehicle (EV) Battery Recycling Market by disrupting the global supply chain of critical raw materials such as lithium, cobalt, and nickel, which are primarily imported. Trade restrictions, increased tariffs, or diplomatic conflicts with resource-rich nations can lead to material shortages and increased costs, hindering recycling operations. Furthermore, geopolitical instability can delay foreign investments and technology transfers crucial for advancing recycling infrastructure. Such tensions may also compel United States to accelerate domestic sourcing and recycling capabilities, fostering innovations but increasing initial investment burdens. Overall, global uncertainties pose both challenges and opportunities for the players in United States United States Electric Vehicle (EV) Battery Recycling Market.

United States Electric Vehicle (EV) Battery Recycling Market

Segmental Coverage

United States Electric Vehicle (EV) Battery Recycling Market – By Battery Chemistry

Based on battery chemistry, United States Electric Vehicle (EV) Battery Recycling Market is divided into Lithium Iron Phosphate (LiFePO4), Lithium Nickel Manganese Cobalt Oxide (LiNiMnCoO2), Lithium Cobalt Oxide (LiCoO2), Lithium Manganese Oxide (LMO), Lithium Nickel Cobalt Aluminum Oxide (Li-NCA), Lead Acid, and Nickel-Metal Hydride (NiMH) segments. The lithium nickel manganese cobalt oxide (LiNiMnCoO2) segment holds the largest share of United States Electric Vehicle (EV) Battery Recycling Market by battery chemistry. LiNiMnCoO2 is widely favored for its optimal balance of energy density, thermal stability, and longevity, making it a key component in EVs and portable electronic devices. As demand for these technologies continues to rise, the recycling of LiNiMnCoO2 batteries has become increasingly vital. Efficient recycling not only enables the recovery of valuable materials like nickel, manganese, and cobalt but also supports environmental sustainability and resource conservation. It makes LiNiMnCoO2 battery recycling essential for fostering a circular economy and ensuring the long-term viability of energy and electric mobility sectors. Meanwhile, the lithium iron phosphate segment is expected to record the fastest growth rate during the forecast period. The surge is driven by its increasing adoption in energy storage systems and EVs due to its cost-efficiency, thermal stability, compact design, and low self-discharge rate. As global environmental concerns grow, manufacturers and governments are shifting focus toward cleaner technologies, with many countries introducing policies to accelerate EV adoption. Although the segment faces competition from alternatives like lead-acid, lithium-air, and flywheel batteries, the non-toxic nature and affordability of lithium iron phosphate batteries position them as a key contributor to the rising demand for sustainable energy solutions.

United States Electric Vehicle (EV) Battery Recycling Market – By Source

United States Electric Vehicle (EV) Battery Recycling Market by source is divided into Electric Vehicle (EV) Production Scrap and End of Life Batteries segments. The end of life batteries segment hold the leading market share of United States Electric Vehicle (EV) Battery Recycling Market by source. The rapid adoption of EVs is a major factor propelling the growth of the segment. As batteries in EVs reach end-of-life, the volume of spent batteries is expected to rise sharply, driving demand for efficient recycling solutions. With battery waste projected to reach several hundred thousand tons annually by 2030, the US EV Battery Recycling Market is poised for the rapid expansion to ensure sustainable resource recovery and environmental management.

Source: BlueWeave Consulting

United States Electric Vehicle (EV) Battery Recycling Market – By Recycling Process

On the basis of recycling process, United States Electric Vehicle (EV) Battery Recycling Market is segmented into Hydrometallurgy, Pyrometallurgy, and Direct Recycling process segments. The hydrometallurgy segment accounts for the major market share in United States Electric Vehicle Battery Recycling Market by process. The hydrometallurgy method helps in the selective extraction of high purity materials, including lithium, cobalt, and nickel. The process’s market dominance is driven by its high efficiency in recovering materials and lower impact on environment than that of the traditional pyrometallurgy process.

Source: BlueWeave Consulting

Competitive Landscape

Major players operating in United States Electric Vehicle (EV) Battery Recycling Market include American Battery Technology Company (ABTC), Aqua Metals, Inc., Call2Recycle, Inc., Cirba Solutions, East Penn Manufacturing Co., Ecobat, Li-Cycle Corp., Redwood Materials, Inc., Retriev Technologies, and Umicore. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

In September 2024 - Redwood Materials, a leading battery recycling company based in the United States, announced its plans to build a USD 3.5-billion worth battery recycling plant in South Carolina.

Scope of the Report

By Battery Chemistry

• Lithium Iron Phosphate (LiFePO4)

• Lithium Nickel Manganese Cobalt Oxide(LiNiMnCoO2)

• Lithium Cobalt Oxide (LiCoO2)

• Lithium Manganese Oxide (LMO)

• Lithium Nickel Cobalt Aluminum Oxide

• Lead Acid (Li-NCA)

• Nickel-Metal Hydride (NiMH)

By Source

• Electric Vehicle (EV) Production Scraps

• End of Life Batteries

By Recycling Process

• Hydrometallurgical Process

• Pyrometallurgical Process

• Direct Recycling